In what ways can cash flow analysis aid in decision-making for management?
How does cash flow analysis helps the management in decision making?
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Cash Flow Analysis and Decision Making
Cash flow analysis is a critical tool that helps management make informed decisions by providing insights into the company's financial health and liquidity. Here's how cash flow analysis aids decision-making:
1. Predicting Future Cash Flows:
2. Identifying Cash Surpluses and Shortages:
3. Evaluating Financial Performance:
4. Assessing Investment Opportunities:
5. Planning for Capital Expenditures:
6. Managing Debt:
7. Improving Working Capital Management:
Conclusion: